From 'Incoming' http://johnwphipps.blogspot.com/
It may just be my perception, but the folks who are not crazy about stimulus spending compared to tax cuts have a large overlap with folks who say Americans need to save more. Isn't this counterproductive or mildly hypocritical? The only thing worse than poorly spent stimulus money is unspent stimulus money. A tax cut right now would, like the last stimulus effort, likely be mostly tucked away in anxious consumer savings or paying down debt, I think. In essence, tax-cutters are counting on consumers' ignoring their own counsel. In fact, ask yourself what you would do with an extra $1000.
I agree with the above statement. I have noticed that tax cuts don't translate well in the real world. A something or other billion dollar tax cut becomes about 50 dollars or less by the time I get my taxes done. Admittedly, I don't pay as much taxes as some. (Although it seems that there are plenty of people who should have paid a lot of tax that 'slipped my mind'.) Tax cuts would benefit mostly those who pay the most taxes. I understand the rationale, those people would be the ones doing the hiring, and manufacturing. The benefits would 'trickle down' to the little person. A tax cut however, would benefit the few more than the many.
It would seem to me, that in order to get this economy moving again, we need to get the money into the hands of the many. I don't think we have to worry about them not spending it. More and more people every day are needing money to spend on staples. Our percentage of unemployment is the highest in 35 years according to Paul Harvey News and Comments, with over 600,000 workers unemployed. If the money were in the hands of the many it would likely get spent. The money would 'trickle up'. I think this would be the best way for a stimulus package to work.
One concern has been the inefficiency of the government in providing jobs, infrastructure, and in public works. The government is for sure inefficient. That is a given. I don't believe it would be more efficient however to put the money in the hands of the best paid people. Recent events would indicate that would only allow the money to aggregate in the hands of those same people. Aggregating the money would be far more inefficient that letting the government 'waste' it. Government spending is often considered a waste when that spending is happening in some other area. It seems like a better deal when the money is spent in our locality, where ever that may be.
I am hopeful that the Congress will be able to work together and pass a stimulus package that the President can sign. One that will start this economy moving again. I do have my doubts however. So far indications are that in Washington, politics as usual is the rule. Voting has been along party lines just like it always has been. I fear we did not trim enough of the dead wood out in the last election.
But maybe I am just being cynical...
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2 comments:
Bill,
Thought your rants deserve a comment. I agree that getting the money into the right hands is a bit of surgery that the government is not very qualified to perform. But who else?
But in the meantime, us folk in Elkhart County are excited because Obama's first trip outside Washington is tomorrow and he is coming to our fair city. Seems like our unemployment rate has gotten the national attention and he is going to try to explain how the stimulus package is going to help our economy.
Tickets to see him are free, but of course already gone. They got gobbled up quickly yesterday. Word on the street is that unemployed people are going to make up the majority of the audience. It will be very interesting to see how this goes.
We haven't had a sitting president in Elkhart County since Johnson came to view the results of the Palm Sunday tornados back in 1965.
I agree...the government Is the only chance we have. The other choice private concerns...like the banks are not interested in getting monies into any other hands except their own. Usually the trickle down effect has worked. Now I don't believe there is enough time left to wait. We have seen too much graft and greed in the private sector of late. I think that graft and greed have always been there, but for some reason now things have become out of control. The moral center has eroded. Our business leaders seem to have no moral center at all. So the government whose moral center concerns me as well, is the only choice.
I am glad that Mr. Obama is on his way to Elkhart Co...Maybe you will catch a glance or hear a statement...I am still hopeful that Mr Obama will prevail.
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